Moving expenses to a new workplace or to start a new business where you move closer to your workplace more than 40 km from your present location to your new location are deductible and include the following amounts: reasonable traveling costs to move you and your family, cost of movers, meals and lodging at your old or new location for up to 15 days while settling in, lease cancellation costs, costs of revising documents, selling costs of old home including real estate commissions, legal fees and land transfer tax on purchase. In addition you are allowed mortgage interest, property taxes, insurance and utilities on your old residence while it remains vacant up to a limit of $5,000.
You can generally claim these expenses net of any reimbursement your employer gives you. Your employer can also reimburse you for expenses without incurring a taxable benefit you for house hunting trips for you and your family.
Your employer can also reimburse you for a loss on the sale of your old residence. The first $15,000 is not considered a taxable benefit. One half of any amounts over and above $15,000 will be considered a taxable benefit.
Other taxable benefits would include mortgage interest differential payments, principal subsidy payments and cost of living subsidies.
Note that moving expenses can only be claimed up to the amount of income earned at your new work place or business. Any amounts not claimed can be used in a future year.
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